Inflation rate extends 4.6% drop in November amid COVID impacts

by ECONOMY

According to the inflation report released by the Central Statistical Organization under the Ministry of Planning, Finance and Industry, the annual rate of inflation in Myanmar, based on the Consumer Price Index, continued dropping to 4.6 per cent in November 2020 as consumer price fell amid the COVID-19 impacts. The US dollar against Kyat is relatively weak in November, with a fall of about K203 against a year-ago period. The imported oil price also dropped against October’s rate, causing the transport group’s price index to slump, the inflation report showed. The consumer price fell in food, non-food, transportation and telecommunication groups. Simultaneously, the CPI spiked in household goods and maintenance, other commodities, tobacco and beverages, clothing, recreation, culture and non-food. The price index of education and rent is stable amid the COVID-19, the report stated.


The annual rate of core inflation, which strips out volatile food and energy prices, was 9.67 per cent in November 2020. The year on year inflation rate stood at 3.65 per cent in November, the inflation data indicated.
During the one-year period from December 2019 to November 2020, the inflation rate stood at 8.81 per cent in December 2019. Despite the drop in fuel oil price and gain in the local currency, the power tariff hike led to a higher inflation rate of 9.2 per cent in February 2020. Then, it gradually declined during the coronavirus outbreak in March due to consumers’ weak demand. Then, the rate fell to 4.60 per cent in November 2020. In November, Ayeyawady Region recorded the highest inflation rate at 9.11 per cent, followed by Mandalay Region at 7.55 per cent, and Nay Pyi Taw at 6.68 per cent.

The rate fluctuated with a maximum rate of 4.19 per cent in Ayeyawady and a minimum rate of -2.67 per cent in Kayah State. Earlier, the inflation rate was calculated based on a 2006 survey. The base year was later changed to 2012. The Central Statistical Organization conducted a Household Income and Expenditure Survey in 82 townships in November 2012. The authorities concerned have been making efforts to reduce the inflation rate based on policies, finance, currency, trade, and foreign currency control, keeping with the second five-year National Development plan (2016-2017FY-2020-2021FY).

Source: The Global New Light of Myanmar

Gas turbine electrical power plant with twilight.

PTTEP approved to build gas-to-power plant in Myanmar

by INVESTMENT

Myanmar has approved the development of an Integrated Domestic Gas to Power Project involving US$2 billion in investments in Kyaiklat, Ayeyarwady Region. The Ministry of Electricity and Energy granted a Notice to Proceed to Thai national oil company PTTEP for the 592-megawatt project, which will be carried out under a 20-year Build, Operate and Transfer basis. An option to extend for five years will also be included.

PTTEP will utilise gas produced domestically at its Zawtika and M3 gas fileds in the Gulf of Moattama to generate affordable electricity for Myanmar. The project, which is expected to be implemented in the first half of 2024, was approved in line with Myanmar’s Sustainable Development Plan and its Energy Master Plan, which aims for all households to have access to electricity 2030. Natural gas produced aat PTTEP’s fields will be transported via onshhore and offshore pipelines totalling 370km.

The pipelines will connect Kanbauk, Daw Nyein and Kyaiklat to two newly constructed gas receiving stations at the project site. The electricity generation from this project is expected to account for approximately 10 percent of Myanmar’s existing installed power plant capacity. The generated power will be sold to state-owned Electric Power Generation Enterprise. It will supply power to future projects around Yangon and Ayeyarwady regions while surplus energy will be fed to the national grid via a 230 KV transmission line from Kyaiklat to the Hlaing Tharyar substation. A final investment decision will be made by early next year.

Source: Myanmar Times

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MIC permits 5 investment proposals including two 30 MW solar projects

by INVESTMENT

The Myanmar Investment Commission (MIC), gave the green light to five new investment proposals including two 30 MW solar projects and approved the four existing projects for capital expansion, according to a video conference held on 30 December 2020. The permitted investments covered the energy, fishery, hotel and services sectors, with an estimated capital of US$138.178 million and K109.204 billion. The projects are expected to create over 4,000 job opportunities. According to the Ministry of Investment and Foreign Economic Relations, the new projects permitted by the MIC include two 30 MW solar power projects in Sagaing Region and a shrimp farm project in Taninthayi Region.

The solar power projects are in keeping with the commitment made by State Counsellor Daw Aung San Suu Kyi to tackle climate change in her address to the virtual Climate Ambition Summit held on 12 December 2020. In her statement, the State Counsellor announced Myanmar’s intention to submit its Nationally Determined Contribution (NDC) by the end of the year. The NDC will aim to reduce over 243 million tonnes of carbon dioxide by increasing the share of renewable energy to 39% and reducing the forestry sector’s net emission by 25%, the ministry stated. The Ministry of Electricity and Energy is implementing solar power plants by next summer to meet the country’s growing demand.


MIC and the relevant investment committees in the past three months (Oct-Dec) of the current financial year 2020-2021 gave the go-ahead to 19 foreign enterprises from China, Singapore, the Republic of Korea, Thailand, India and Viet Nam in manufacturing, livestock & fisheries and agriculture, energy and hotels and other services sectors. They brought in investments of over US$337.75 million, including the expansion of capital by existing enterprises. The foreign enterprises created over 11,000 jobs for locals.
The FDIs have flowed into 12 sectors. They are oil and gas, power, transport and communications, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other services sectors. Of 51 foreign countries and regions investing in Myanmar, Singapore put the largest investments, followed by China and Hong Kong (SAR).

Source: The Global New Light of Myanmar

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Muse-Mang Weing land border to open trial 24-hour service from 5 to 14 January 2021

by TRADING

Muse-Mang Weing land border will have 24-hour service between 5 and 14 January on a trial basis amid the strong COVID-19 safety measures. Myanmar primarily exported agricultural products and fisheries to China via the land border. The COVID-19 impacts triggered a trading halt. Among Myanmar-China land borders adjacent to Muse district, Mang Weing, Kyinsankyawt and Pansai (Kyu Kok) are open for trading between 6 am and 10 pm in line with COVID-19 health guidelines. However, trading hour limit caused delay and quality loss for perishable goods. It is almost a year that Myanmar found the first COVID-19 case. Following a friendly negotiation between a team led by Muse District head U Hlaing Soe Thant and the People’s Government of Ruili officials led by Mr Yang Shiyong on 2 January, trading hours through Muse-Mang Weing will be extended to 24 hours between 5 and 14 January on a trial basis. The two countries are responsible for the drivers to follow the health guidelines, and China continues imposing a driver substitution rule.


Myanmar’s fisheries and agricultural products can be quickly delivered to China. If the coronavirus preventive measures are successful during the trial period, trading will return to normal. Furthermore, other land borders such as Kyinsankyawt and Pansai (Kyu Kok) are also set to extend trading hours, according to the coordination meeting. At present, Nandaw and Manhero areas which were mostly crowded with people have been closed. Moreover, Sinphyu land border was also shut down for freight lorries. As a result of this, the authorities concerned from both sides negotiated the Sinphyu land border’s reopening later. At present, around 150 lorries can enter Mang Weing checkpoint per day. About 250 lorries are expected to pass the crossing upon 24-hour service, Muse Highway Freight Forwarders Association stated. The trade value through Muse border plunged to US$785.6 million between 1 October and 18 December of the current financial year 2020-2021 because of the impacts caused by the COVID-19 preventive measures.

According to the Ministry of Commerce, the figures reflected a decrease of $468 million compared to the corresponding period of the previous FY. Muse is an important border in Myanmar and handles the largest volume of trade. But at times, it has experienced a sharp drop in trade on account of China clamping down on illegal goods, resulting in a halt in the trade of agricultural products. Moreover, the COVID-19 impacts slow the business this year. Following the COVID-19 consequences, trading via Muse did not reach a monthly target of above $400 million in the previous months last FY. Myanmar intended to reach trade target of over $5 billion through Muse for the last 2019-2020FY; however, only $4.86 billion worth goods were traded. Border trade values at Muse stood at $5.4 billion in the 2016-2017FY, $5.8 billion in the 2017-2018FY and $4.9 billion in the 2018-2019FY respectively, as per data of the Commerce’s Ministry.


In a bid to contain the spread of coronavirus in the border, China banned border crossing. Shortly after that, about 50 drivers are allowed to pass the border under driver substitution system. Those drivers are, however, tested every three days. As a result of this, China included them in the vaccination programme, covering 41 Myanmar lorry drivers so far, said U Min Thein, vice-chair of Muse rice wholesale centre. Myanmar exports agricultural products, including rice, beans and corns, and fishery products such as crab, prawn, etc. Furthermore, Myanmar’s natural gas export to China is also conducted through Muse-Ruili border. The raw CMP materials, electrical appliance and consumer goods are imported into the country.

Source: The Global New Light of Myanmar

Second aviation facility for development of Chin State

by HOTEL & TOURISM

NOW is time of beefing up development tasks in all parts of Myanmar including hilly areas and remote sites. Despite facing impacts of pandemic Covid-19 similar to other global countries, Myanmar is undertaking development tasks in line with the health guidelines as much as it can. Especially, infrastructures are being built in hilly areas which lagged development behind other regions and states. Currently, one more new
aviation infrastructure is under construction in Chin State with 75 per cent completion with the aim of ensuring smooth transportation and contributing much to tourism sector and other businesses in the state. Such kind of new aviation facility takes a position in Lailenpi Town of Matupi Township in Matupi District of Chin State. It will be a small airstrip only. Construction of the airstrip started in May 2019. Implementation of the airstrip project was approved by Union Government meeting 12/2017, according to Chin State government. Lailenpi airstrip is located at an altitude of 4,918 feet. The runway of the airstrip will be 2,500 feet long and 50 feet wide.

The airstrip will have facilitated with a 150 feet long and 200 feet wide apron for landing of the aircraft. It was learnt that construction of Lailenpi airstrip is being undertaken in southern Chin State with assistance of Mission Aviation Fellowship-MAF. Hence, it will be the first ever airstrip built in Myanmar with cent per cent monetary and technological assistance given by an international aviation organization. In fact, Chin State having plentiful of natural beauties is an origin of natural resources which can help develop the tourism industry with momentum. Smooth transport
is of great importance in creating chances for bringing about the improvement of customs and traditions of ethnic people and their daily lifestyle, and the creation of new destinations for tourists. As such, the government is rendering assistance for fulfilling needs of people as much as it can. Consequently, a new airstrip is scheduled to emerge in Chin State. In the future, Lailenpi airstrip will render more support to health care services to be given to local ethnic people residing in southern Chin State.

Thanks to the airstrip, local ethnic people will have to enjoy health care services and emergency transportation for rescue in natural disasters. In reviewing construction of the airports in Chin State, Lailenpi airstrip will
be the second facility of its kind. The first one was Surbung Airport built at 7,175 feet higher than the sea level, which is located 8.5 miles from Falam of Chin State as well as about 40 miles from Haka. Moreover, the airport takes a position, about 50 miles from Reed border trade camp at Myanmar-India border area. In addition, the airport was built on 6,000 feet high Surbung mountain near Lonpi Hill in Chin State, it is the highest airport in Myanmar. The runway of Surbung Airport can withstand 50,000 lbs of load. So, it can admit landing and takeoff of ATR-72 aircraft. The airport is facilitated with a 6,000 feet long and 100 feet wide runway. The lounge of the airport can give services to about 250 passengers. The first landing test of ATR-72 was conducted on the runway of Surbung Airport on the morning of 27 October 2019. The ground surveys and creation of designs for Surbung Airport, the first-ever airport of Chin State, were conducted in 2015-16 financial year. The airport was built depending on allotment of budgets in respective financial years.

Surbung Airport will be a focal point in Chin State to have direct aviation access for local people to Yangon, Mandalay and Nay Pyi Taw so as to contribute much to development of Chin State. So also, the stake driving ceremony to build the second one Lailenpi airstrip took place on 4 May 2020. The airstrip is purposed to admit landing and takeoff of aircraft which can carry 20 passengers each. Thanks to the new airstrip, local and foreign travellers will have convenience in their visits to Chin State. Enjoying fruitful results of aviation infrastructures such as airports in Chin State, travellers and businesspersons from Yangon, Nay Pyi Taw and Mandalay will have chance to make a day trip to Chin State in a short time. Moreover, local ethnic people will have better facilities of emergency health care services by transferring the patients to major cities such as Yangon, Nay Pyi Taw and Mandalay if necessary. The authorities decided to spend US$2 million on construction of Lailenpi airstrip in Matupi Township of southern Chin State. As the construction will complete soon, it will be the facility to help develop Chin State.

Source: The Global New Light of Myanmar

covid_vaccine

Myanmar has signed a contract with India to get the COVID-19 vaccine and health workers will be vaccinated as first batch in February

by COVID

Aung San Suu Kyi, the State Counsellor, said that there is a contract with India to get the COVID-19 vaccine and that the first batch of health workers would be vaccinated in February. “One thing people want to know right now is when will the COVID vaccination program start. A contract has been signed to get the first vaccine from India. The vaccine is expected to be available in Myanmar once it is approved by the relevant authorities in India. Under the program, the first immunizations will be given to health workers, a priority group in February. There is a lot of competition because all the countries in the world are working to get the vaccine. However, by 2021, vaccination efforts are expected to be phased out across the country.  the public to support the success of COVID by adhering to health.

The COVID-19 vaccine, developed jointly by AstraZeneca Pharmaceuticals and the University of Oxford, has been approved for use in the country and will be launched on 4 January, the British government announced on December 30. The Medicines and Healthcare Products Review (MHRA) has approved the use of the AstraZeneca and Oxford COVID-19 vaccines, a British government spokesman said. The two countries are in talks to get the COVID-19 vaccine for health workers and key workers in Myanmar by March 2021 under the G to G program from the Government of India, according to the Ministry of Foreign Affairs. Myanmar Ambassador to India briefed HE Smt.Smita Pant, Joint Secretary of the Ministry of External Affairs of India on the availability of COVID-19 vaccine in Myanmar. The meeting was held on the morning of December 28, 2020 in South Block. During the meeting, they discussed the availability of COVID-19 vaccine for health workers and vital workers in Myanmar by March 2021 under the G to G program from the Government of India. 

A memorandum of understanding (MoU) has been signed between the Myanmar Ministry of Health and Sports and the Indian pharmaceutical company Serum Institute to discuss the availability of vaccines and the availability of standardized low-cost RT-PCR test machines made in India. The Burmese delegation is in talks with Indian government officials to obtain the COVID-19 vaccine, the Ministry of Foreign Affairs said on December 24. Earlier in 2021, officials from the Indian government discussed the availability of the COVID-19 vaccine under the G to G program from the Indian government and the availability of drugs from the Indian pharmaceutical company Serum Institute. Afterwards, the residence of the Myanmar Ambassador to India; A Memorandum of Understanding (MoU) for the purchase of COVID-19 vaccine was signed between a delegation from the Ministry of Health and Sports and Serum Institute at the meeting hall of Myanmar Home. The MoU was signed by Ambassador Aung Aung Myo Thein of the Myanmar Embassy as a witness.

Source: Daily Eleven

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Myanmar in 2021: Navigating Reform, Recovery & RCEP

by EVENT

Date: 12th January, 2021

Time: 3:00 PM (MMT)/ 4:30 PM (HKT)

Venue: Zoom Webniar

Hosted by: Myanmar Hong Kong Chamber of Commerce and Industry

Meeting Details:

This virtual event will bring together Myanmar-focused policymakers, veteran entrepreneurs and executives as well as leading journalists to discuss the crucial issues for Myanmar as the country navigates the government transition, COVID-19 and economic recovery in 2021.At MHKCCI’s September 2020 event “Politics and the Myanmar market”, the elections and their business implications were on the agenda. Fast forward to January 2021, this event will consider new policies, investment opportunities and key challenges that are expected to dominate Myanmar during this year and beyond.

Presenters (by the last name alphabetically):
– Peter Brimble (Senior Technical Adviser, DaNa Facility)
– Thompson Chau (Chief Reporter and Associate Editor, Myanmar Times) (panel chair)
– Sam Glatman (Founder, Ko Shwe Ventures)
– Josh Htet (Senior Associate, Allen and Overy)
– Kyaw Soe Htet (Digital Editor, Myanmar Times)
– Sandar Min (National League for Democracy MP and Chair of Yangon Region Hluttaw’s Finance, Planning and Economic Committee)
– Shirley Ng (Director; Thailand and South Asia, Hong Kong Trade Development Council)
– Takaaki Yabe (Deputy Managing Director, Daizen Myanmar)

*Opinions expressed by individual speakers do not represent the views of the MHKCCI. The chamber is not responsible for any of the information and views provided in the video recording.

*Registration details will be released soon.

New Mawlamyine Attaran Cable-stayed Bridge on East-West Economic Corridor with Japan (ODA) Loan

by CONSTRUCTION

The construction of the new Mawlamyine old cable-stayed bridge on the East-West Economic Corridor will begin on December 30, 2020 with a JICA Japan loan (ODA) and will be completed within 39 months with a four-lane road and 60-tonne capacity. Environment cleaning of the bridge will begin on December 10 and construction will begin on December 30. On 5th January, courtyards and buildings for engineers will be built . The rest of the work will continue according to the schedule. IHI is the original contractor from Japan. This is one of four subcontractors from them. The business information is in line with the public statement.

The old cable-stayed bridge was built by the military government. Two-way traffic Trucks carry a lot of cargo, which is costly in terms of transportation, and uses a lot of time. The new steel cable-stayed bridge will have four lanes. With a tonnage of 60 tons, the flow of goods from Myawaddy on the Thai border has accelerated, and real estate, including the Moulmein Industrial Zone, is expected to have a good market. The land included in the new bridge has already received appropriate compensation, so it is a convenient business. 

The new cable-stayed bridge is a three-span steel girder with steel girders, reinforced concrete, and approaches 506 ft. Main bridge 1070 feet. The four-lane road is 68 feet wide. 60 tons of load; Completion date is 39 months from the date of commencement. Similarly, there is also a construction of the Jai (Zarthapyin) cable-stayed bridge in Kayin State on December 30.

Source: Daily Eleven

Gold-market

YGEA to go online for its gold market trading

by TRADING

ACCORDING to the association, the Yangon Gold Entrepreneurs
Association (YGEA)’s gold market trading will be conducted online. YGEA Chair U Myo Myint said that YGEA is launching virtual trade through the Zoom application every Sunday to lead the trading via an online system.
“We have started trading online. We also have a problem with Wi-Fi for online trade. Most of our traders are the old-age people. They cannot use phone expertly. Most of our traders are over 50 years old. Now, we are teaching them how to use the phone. Every Sunday, we are giving them knowledge via training. The virtual trade is also available through the Zoom application on every Sunday at the YGEA office. Once we’ve all learnt how to use, we will start steadily,” he elaborated.


YGEA is carrying out the gold trading through the online system intending to prevent the people from being crowded so that the spreading of COVID-19 can be prevented. “An online system has come to be in the mainstream in our effort to prevent the spreading of the pandemic. We don’t want too many people to gather. Additionally, the gold shops could save their time by trading the gold via an online system directly. Nowadays, the trading market has widely expanded with traders from states and regions being engaged,” said the YGEA chairperson.


On account of the second wave of COVID-19, the Yangon gold market was temporarily closed on 5 September 2020. During the suspension period, the pure gold fetched over K1.3 million per tical (0.578 ounces or 0.016 kilogrammes) in the domestic market. The gold was then priced at over K1.3 million in early October when the gold trading was resumed. On 1 January 2021, the pure gold in Myanmar was traded at a price of over K1.3 million per tical while the global gold price hit US$1,890 per ounce. During the first wave of COVID-19 in Myanmar, Yangon gold market was closed between 29 March and 17 May.

Source: The Global New Light of Myanmar

The Myeik Archipelago has the potential to become Myanmar’s fifth regional tourist destination

by HOTEL & TOURISM

The Myeik Archipelago is likely to be included as Myanmar’s fifth tourist destination, and efforts are being made to develop marine tourism, said an official from the Department of Hotels and Tourism. The Myeik Archipelago has beautiful islands; Underwater views; Rare coral reefs remain; Due to the unique lifestyle of the Salunga people, it has become a popular tourist destination. Due to these circumstances, the hotel and tourism industry in Tanintharyi Region needs to develop marine tourism. For the development of community-based tourism, the regional government; Tour operators’ associations; It is reported that they are working in collaboration with NGOs. CBT is being developed in conjunction with Marine Tourism. Because it is based on an island in the sea, it is called an island-based tourism business because it is based on an island village. In World Tourism, more than 60% go to Marine Tourism. They are stuck in Tanintharyi Region alone. 

There are a number of factors that need to be addressed in the success of marine tourism, as well as the development of villages on the islands related to marine tourism, and the key CBT needs to be in place. So if you look at the tourism industry in Tanintharyi Region, there are currently four tourist destinations in Myanmar. Yangon, Mandalay Bagan It is called Taunggyi. Tanintharyi region is the most promising tourist destination. Myeik Archipelago has also been announced to international travelers. It can be explained in detail about Myeik Archipelago tourism to any country. The beauty of the islands; The show focuses on underwater beauty. Corals, especially in our area, are becoming rare even in Southeast Asia. So it is needed to keep these things going. What needs to be done everywhere is to create tourism. As it is the only marine tourism destination in Myanmar, it has a lot of potential in the future. The Myeik Archipelago is one of the four developed tourism industries in Myanmar and may increase to five in the future.

 The first island-based tourism venture in Burma will open in January 2021 in Don Nyaung Hmaing village in the Myeik Archipelago, and locals say security and other needs remain. They are the local administration, but they do not have the authority to go beyond the framework. If the government can provide security for visitors, it is ready to support. Nyaung Hmaing Beach is accessible 24 hours a day. But as the number of passengers increased, so did the number of high-speed vehicles. At that time, the beach was not easily accessible. That is why they need a jetty. In Don Nyaung Hmaing village, some buildings for CBT have been built on an area of ​​about two acres and the village will be responsible for providing services. Once tourism starts here, security will be needed. A village jetty will be needed.

Moreover, if tourists come in, there will be job opportunities for the grassroots. They will arrange for you to go to the islands the visitors want to go by small boat. There are many villages on the island, so it is like cycling. If the visitors want to go to other places to study, they will arrange it. There is Salung culture and traditional dances. CBT (Community Based Tourism) was proposed to the Tanintharyi Region Government after 2017 to develop tourism in Tanintharyi Region. In January 2021, Myeik District, it would open in Done Nyaung Hmaing village and another in Kawthaung district. Three CBTs and one CBT can be implemented in Tanintharyi Region at present, as daytime CBT is being carried out in Tizi Village, Dawei District.

Source: Daily Eleven